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Enclosure 3 in No. 1.
Dr. Yen to Herr von Borch.
559
May 20, 1921.
I HAVE the honour to acknowledge the receipt of your Excellency's letter of even date, in which it is stated:-
"As an explanation to the German declaration and the Sino-
German Agreement, I have thehonour, at the instruction of my Government, to make the following declarations;-
1. Customs tariff on Chinese gooda imported into Germany:
The statement that the import, export and transit duties to be paid
by nationals of either of the two high contracting parties shall not be higher than those paid by nationals of the country, as provided for in article 4 of the agreement, does not preclude China from the privilege of applying; article 264 of the Versailles Treaty,
2. The payment of indemnity: The statement in the German
declaration that Germany is prepared to reimburse the Chinese Government the expenses of the interment of Germen militaries in
various camps of interment in China is understood to maen that Germany, in addition to indemnifying China for her losses according to the principles of the Voranilles Tranty, in »lso wiling to
refund to Chins the internment expenses.
As to the indemnity for war losses, Germany undertekss to pay in
advance a portion thereof in a lump sum, which represents the
equivalent of one-half of the proceeds from the liquid-ted German,
property and one-half of the values of the sequestrated but not yet liquidsted Germen property, which "mount will eventually be agreed upon and which will consist of 4,000,000 dollars in oash and the
balance in Tain-Pu and Hu-Kuang Railway bonds.
3. Chinese property in Germany: The movable and urmovable properties of Chinese residentsin Germany will be returned at the
ratifigation of the agreement.
4. Chinese students in Germany: In regard to the Chinese students in Germany, the German Goverment will be pleased to assist then with its best efforts in securing admission to schools
or acquiring practical experience."
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